information you should know
Duties of Stockbrokers to their Customers
Learn about:
- Fair Dealing
- Duty of Loyalty
- Obligation of Disclosure
- Authorization for Trading
- Requirement of Suitable Recommendations
- Special Situations
- Supervisory Responsibility and Duty of Good Faith
Common Complaints Against Stockbrokers
Learn about:
- Trading without permission
- "Guaranteed sure winner"
- Excessive trading
- Insider information
- Ineptitude or malpractice?
- Risky investments and misrepresentations
- Sold too soon
- Margin problems
- Limited partnerships
- Complaints to supervisor
Legal Causes of Action Against Brokers and Brokerage Firms
Learn about:
- Federal Security Laws
- State Blue-Sky Laws
- Consumer Protection Statutes
- Fraud and misrepresentation
- Negligence and malpractice
- Breach of contract
- Unsuitable trading
- Churning
- Breach of fiduciary duty
- Failure to supervise
Arbitration Process
Learn about:
- Introduction to arbitration
- Why arbitrate?
- Where to arbitrate?
- Advantages and disadvantages of arbitration
- Is a lawyer required for arbitration?
- Arbitration Procedure
- The arbitration hearing
- Arbitration awards
Calculation of Damages
Learn about:
- Compensatory damages
- Market-adjusted damages
- Lost profits
- Interest on losses
- Attorney's fees and expenses of arbitration
- Punitive damages
Timing Issues, Eligibility and Statutes of Limitation
Learn about:
- Introduction to the issues
- Eligibility to arbitrate
- Statutes of limitation
- Federal securites law time limitations
- State anti-fraud securities law time limitations
- State consumer protection statutes of limitation
- Statutes of limitations for common law claims of fraud and misrepresentation
- Limitations period for breach of contract, negligence and breach of fiduciary duty
How to Avoid Problems
Learn about:
- Be careful in choosing a stockbroker or investment advisor
- Exercise caution in opening account and with new account documents
- Review all account statements, trade confirmations, prospectuses and correspondence from the broker or brokerage firm
- Listen carefully to what the broker says and ask questions
- Put complaints in writing and notify the broker's manager
- Do not ignore problems
- Do something